The trend of outsourcing to overseas suppliers and contractors
may be losing some of its luster. Many businesses are returning to
U.S. manufacturers — also known as re-shoring — to
obtain goods faster and at lower costs than foreign suppliers can
offer. Moreover, "Made in the USA" tags can win over
domestic customers who want to feel good about their purchases.
Complying with FTC Rules
In order to claim a product is "Made in the USA," you
must comply with strict regulations set forth by the Federal Trade
Commission (FTC). These rules require that final assembly take
place on U.S. soil and the majority of total manufacturing costs be
spent on U.S. parts and processing. Complex labeling standards may
also apply if an American flag or map is used on packaging to imply
the country of origin.